The day your teenager gets their hands on a driver’s license is monumental for them and you as parents. However, with the mix of excitement and anxiety comes the financial implications of what’s to come. Not only are you worried about your child’s safety, but you also want to ensure they have the best car insurance policy.
With so many different car insurance plans and policies, including the dollar-a-day insurance, picking one can be challenging.
This article will highlight some essential factors that one needs to know when it comes to buying car insurance for teen drivers.
When it comes to picking car insurance, you have to be on top of the coverage types available. Ideally, you want to insure your child’s experience while driving on the road.
Some important aspects to remember are:
Liability insurance – Across the U.S., there is a minimum coverage that’s mandatory for every driver who’s driving their car on the road. That’s what is termed as liability insurance. With this, the insurance company will cover damage and injuries that are caused due to the teen’s driving.
Collision coverage – If your teen gets into an unfortunate accident and bumps and damages their car, this will pay for that damage, irrespective of who was at fault.
Comprehensive coverage – This coverage covers theft, vandalism, or damage from natural disasters.
Personal injury protection – In case of an accident, if your teen and the other party involved are poorly injured to the point that they need medical assistance and hospitalization, the coverage will take care of that.
Roadside assistance – In case of flat tires, breakdowns, or unexpected roadside complications, the insurance will cover any kind of assistance that your teen needs at that moment.
Adding a car insurance premium for your teenager to your existing billing load can be tricky. Following are a few tips that can help you save on the premiums:
- Some companies offer discounted premiums when you club the auto insurance with homeowner’s or renter’s insurance. So, try doing that.
- If you reduce your deductibles of car insurance every year, it can significantly reduce the premium. So, that’s another way to reduce it.
- Teen drivers often have a repertoire of being reckless while driving. Instill a sense of responsibility in your teenager about prioritizing safe driving while on the road. Encourage them to avoid not only accidents but also violations.
- Some insurance companies offer extra premium discounts for pre-integrated cars with additional safety features. You can consider that while buying a car for your teenager.
- The more driving experience your teenager acquires, the more you can revise and adjust the insurance policy terms and coverage to best fit your budget.
Buying car insurance for your teenager comes with a lot of responsibility. Not only do you have to prioritize safety, you have to prioritize the budget as well. We have highlighted some of the most favorable pointers that you need to keep in mind as a parent. Also, you must do thorough research so things are in order and you can get the best deal.